Intra-industry Trade Development Of The Doctrine On The Theory Of International Division Of Labor

The theme of this dissertation is about a prominent problem oncontemporary international economics, intra-industry trade. Monographicstudies on intra-industry trade has a theoretical and practical significance fordeveloping international trade theory, guiding international trade practice,further clarifying the meaning for China's participating global labor division ,andimproving China's foreign trade development strategies.Chapter I deals with the definition and measurement of intra-industry trade.Various intra-industry trade indices are introduced and evaluated, of whichGlubel-Lloyd index is regarded as the best intra-industry trade index up to now.The main task for chapter II is to introduce the early researches ofintra-industry trade. The main delegates are Ohlin, Hildgert, Verdoorn, Grubel,Lloyd and so on.The main task for chapter III is to introduce and evaluate mainintra-industry trade models. There are three forms of intra-industry trade:identical products intra-industry trade, horizontal intra-industry trade andvertical intra-industry trade. Many economists thought that scale economies,imperfect competition and product differentiation are the main causes ofintra-industry trade.Chapter IV introduces another theory of intra-industry trade cause, similarcommand theory, which is offered by Linder. He thought that countries havesimilar command for some kind of products if they have similar income level.The fundamental assumptions of intra-industry trade theory are morerealistic than that of traditional international trade theory. Profit maximizationcan not be found in traditional trade theory, but on the contrary, profitmaximization is an fundamental concept in intra-industry trade theory.Intra -industry trade between China and some main developed countrieshas been developed rapidly these days, which is very important to China inupgrading manufacturing and improving socialist market economy mechanism.